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International Differences in Entrepreneurship$
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Josh Lerner and Antoinette Schoar

Print publication date: 2010

Print ISBN-13: 9780226473093

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226473109.001.0001

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Explaining International Differences in Entrepreneurship

Explaining International Differences in Entrepreneurship

The Role of Individual Characteristics and Regulatory Constraints

(p.17) 1 Explaining International Differences in Entrepreneurship
International Differences in Entrepreneurship
Silvia Ardagna, Annamaria Lusardi
University of Chicago Press

Global entrepreneurship monitor data from thirty-seven countries has been used to estimate the differential effect that individual characteristics such as work status, education, and attitudes toward risk have on entrepreneurship because of cross-country differences in regulatory constraints. By using this data set, this chapter distinguishes between two different types of entrepreneurs: those who enter entrepreneurship to pursue a business opportunity versus those who enter entrepreneurship because they could not find better work. Different measures of regulation, from measures of regulation in the product markets to regulation in the labor markets and the legal system, are addressed. The chapter goes back to the question of how personal characteristics correlate with the choice to become an entrepreneur. However, unlike earlier papers, which mainly bundled different types of entrepreneurial firms together, these authors are able to differentiate between what they term “remedial” entrepreneurs and those who are exploiting growth opportunities.

Keywords:   entrepreneurship, international differences, business, regulatory constraints, labor markets, legal system

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